A blockchain is essentially the software that will empower your crypto business operations. It’s a decentralized, distributed network that can be used for a variety of applications, including digital payments and the creation of DApps (decentralized applications) such as smart contracts.

In a way, blockchain is the foundation of any crypto business, which is why selecting the right blockchain network is immensely important.

All blockchain networks can be broadly classified into the following four types:

1. Public blockchain
2. Private blockchain
3. Hybrid blockchain
4. Consortium blockchain

In this article, we will discuss the differences between a private blockchain and a public blockchain, which happen to be two of the major blockchain networks in use.

What is a public blockchain?

Public blockchains, as the name suggests, are publicly accessible. Basically, anyone can join a public blockchain network and use it without needing any specific permission. This type of blockchain are not controlled by any single entity or company/person and can be publicly accessed and used by anyone.

On a public blockchain, any user can authenticate transactions and get rewarded for it. But, public blockchains are generally not very efficient and function slowly.

What is a private blockchain?

A private blockchain is a special type of blockchain network that is owned and managed by a single organization. It’s like purchasing a custom blockchain network for your own company or business.

Private blockchains are created and used by companies within their internal networking systems. This type of blockchain is particularly useful for organisations looking to keep their privacy intact and limit access to their company network.

Private blockchains are generally more efficient and faster. Since they can only be accessed via specific permissions and regulations, they are also more focused on privacy. These blockchains are custom made to offer the required features, including scalability, as well as to support the particular company systems.

Public blockchain vs. private blockchain for businesses

The primary difference between a public blockchain and a private blockchain is in terms of participation, i.e. the way the network is accessed, used, and maintained.

Only a public blockchain is truly decentralized, as it is not controlled by any single entity or company. Private blockchains are centralized and controlled by specific organizations.

Anyone can read, write, or validate transactions on a public blockchain. However, to access or make changes on a private blockchain, special permissions are required.

Anyone can build on a public blockchain. So, if you are looking to allow developers to create their own DApps on the network, a public blockchain would be the best option. Only the owner or allowed members can access and make changes in a private blockchain.

Another notable difference between public and private blockchains is security. As public blockchains are truly decentralized, and therefore, immutable, the network is relatively more secure, unlike private blockchains that compromise security for privacy.

Other private vs. public blockchain differences include:

. Public blockchains have limited scalability
. Public blockchains are more secure than private blockchains
. Public blockchains are less efficient and generally slower
. Private blockchains operated in a controlled environment and are, therefore, cheaper to run and manage

Libra Ecosystem, for instance, uses a public blockchain called BSC (Binance Smart Chain) that is focused on efficiency and security and allows users to build custom DApps for the benefit of the e-commerce industry. Find out more at https://libraecosystem.com/